Suwon City Provides Up to 50 Million KRW Special Guarantee for Small Business Owners

Suwon City Hall Panorama

[Asia Economy (Suwon) = Reporter Lee Young-gyu] Suwon City in Gyeonggi Province guarantees up to 50 million KRW per business through the 'Special Guarantee for Small Business Owners.' The special guarantee fee support is up to 500,000 KRW.

On the 14th, Suwon City announced that it will carry out the '2023 Special Guarantee and Fee Support Project for Small Business Owners' to support small business owners struggling due to the economic downturn.

The special guarantee is a system that guarantees loans with relaxed screening methods so that small and medium-sized enterprises and small business owners who cannot receive loans from banks due to lack of collateral or poor financial conditions can obtain low-interest loans from financial institutions.

This year, the city contributed 2 billion KRW to the Gyeonggi Credit Guarantee Foundation, and Gyeonggi Credit Guarantee Foundation guarantees 20 billion KRW, which is ten times the contribution amount, to the relevant small business owners. The guarantee limit is 50 million KRW per business.

Eligibility for application is small business owners residing in Suwon City who have been registered as a business for more than two months as of the special guarantee application date.

Users who have exceeded the guarantee limit using existing credit guarantee funds such as the Korea Credit Guarantee Fund may be restricted from special guarantees. Special guarantee support may not be possible depending on the Gyeonggi Credit Guarantee Foundation's screening (such as personal credit rating). If the loan recipient relocates the business to an area outside Suwon City or suspends/closes the business, funding support will be discontinued.

Small business owners who apply for the special guarantee will receive a 1% (one-time) special guarantee fee support for the first year. The maximum is 500,000 KRW per business.

For detailed information, please refer to the Suwon City website.

A city official stated, "We expect that the special guarantee and fee support for small business owners will be of some help to small business owners who are struggling due to the economic downturn and rising prices."

This content was produced with the assistance of AI translation services.